Noble Corporation plc A Ordinary Shares (NE)

FairStock Score: 31/100 — RISKY

Key Financials

Strengths

• Generates $377 million in annual free cash flow (4.8% yield on market cap)
• Conservative balance sheet with debt-to-equity of just 0.47, providing financial flexibility
• Attractive 4.2% dividend yield providing steady income returns

Concerns

• Trades significantly above Graham Number ($29) with negative 65% margin of safety—limited downside protection
• Revenue declining at 17.6% year-over-year signals potential demand weakness or market share loss

AI Analysis

Noble Corporation plc A Ordinary Shares is a small-cap energy company valued at $7.8 billion. The business generates $3.1 billion in annual revenue with a 2.8% net margin and $377 million in free cash flow. From a quality standpoint, Noble shows Altman Z-Score of 1.8 in the grey zone and modest 5% ROE. On valuation, the stock is trading at a premium 36.3x earnings, with trades above its Graham Number with a negative 65% margin. Growth dynamics show revenue growing at -17.6% and profit growth of -10.4%. The 4.2% dividend yield adds an income component for patient holders. Our composite FairStock Score of 31/100 reflects below-average fundamentals overall. Investors should weigh the business quality against the current price and their own margin of safety requirements.

Bull Case

Improving fundamentals and sector tailwinds could drive meaningful earnings growth, compressing the effective multiple for patient investors. With $377 million in annual free cash flow (4.8% yield), management has ample capital for buybacks, dividends, or accretive acquisitions.

Bear Case

At 36x earnings, any growth disappointment triggers rapid multiple compression—a 20% earnings miss plus multiple contraction to 20x implies 40%+ downside. Regulatory changes, input cost inflation, or demand normalization represent underappreciated risks that could materially impact forward estimates.

Data from SEC filings. AI analysis is for educational purposes only — not investment advice. Scoring methodology · Disclaimer